GREENWAY PROPERTIES MIDLANDS LIMITED

Executive Summary

Greenway Properties Midlands Limited, a newly incorporated private limited company operating in real estate, demonstrates significant solvency and liquidity concerns in its first year with net liabilities and negative working capital. While regulatory compliance is up to date and the company holds investment property assets, the substantial secured bank loan and shareholder deficit pose financial risks. Further due diligence on cash flow management, property valuation, and funding arrangements is essential to assess operational sustainability.

GREENWAY PROPERTIES MIDLANDS LIMITED - Analysis Report

Company Number: 14471657

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: HIGH
   Justification: The company shows net liabilities and negative shareholder funds within its first financial year, reflecting an undercapitalized position. Substantial long-term debt secured by company assets and negative working capital suggest solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders Deficit: The company reported net liabilities of £3,357 and a shareholder deficit of £3,457, indicating that liabilities exceed assets, which is a significant solvency concern.
• Negative Net Current Assets: With current liabilities (£28,106) far exceeding current assets (£3,115), the company faces a working capital shortfall (-£24,991), pointing to liquidity constraints.
• High Secured Bank Loan: A bank loan of £50,466 secured on company assets presents a significant fixed obligation that may pressure cash flows, especially given the limited current asset base and operating scale.

3. Positive Indicators:

• Active Status with No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Director Control and Ownership: The sole director and 75-100% shareholder, Eleanor Louise Gregory, remains actively involved, which may provide management stability.
• Initial Asset Acquisition: The company has acquired an investment property valued at £72,100, which may generate future income or capital appreciation.

4. Due Diligence Notes:

• Cash Flow Projections and Funding Plans: Investigate how the company intends to service its bank debt and improve working capital given the current negative liquidity position.
• Valuation and Income Generation from Investment Property: Confirm the fair value of the property and assess expected rental income or sale prospects to support financial sustainability.
• Director Advances and Related Party Transactions: Clarify the nature and terms of the director's advances (£27,206 credit balance) to understand any contingent liabilities or funding risks.
• Future Revenue Streams and Business Model: As a recent incorporation (Nov 2022) with limited operational history, review business plans and contracts to gauge operational viability and growth potential.